%0 Journal Article %A Andrea Velásquez %T The Economic Burden of Crime %B Evidence from Mexico %D 2020 %R 10.3368/jhr.55.4.0716-8072R2 %J Journal of Human Resources %P 1287-1318 %V 55 %N 4 %X I estimate the impact of the recent and unprecedented surge in drug-related violence in Mexico on the labor market outcomes of Mexican workers. Using a nationally representative longitudinal data set that allows me to account for unobserved time-invariant heterogeneity, I find that there is a negative relationship between local violence and labor market outcomes. Self-employed individuals are the most sensitive to a violent environment, with men experiencing significantly reduced earnings and productivity, while women decrease their hours of work or exit the labor force entirely. I also find suggestive evidence that fear of victimization plays an important role explaining these changes. %U https://jhr.uwpress.org/content/wpjhr/55/4/1287.full.pdf